5 Companies to Watch as Smartwatch Rumors Circulate

5 Companies to Watch as Smartwatch Rumors Circulate

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Ever since rumors circulated that Apple (AAPL) would develop an iWatch, additional rumors about a “smartwatch” circulated. In truth, the smartwatch is not entirely new: Sony (SNE) already has one on the market. Sales for the Sony smartwatch are likely weak, due partly to bad reviews, even from sites covering Android news.

Google (GOOG) could possibly announce an Android watch on May 15 at the Google I/O developer’s conference.

Apple could have an iWatch on the market. Even though a search for “Apple iWatch” yields 3.12 million results on Google search, this rumor has yet to be confirmed.

Analysis

Consumer interest in watches is declining, since nearly all smartphones have a clock app that makes watches unnecessary. The drop hurts brand names, but companies like Guess (GES) and Michael Kors Holdings (KORS) sell other products besides watches. This time around, the release of a smartwatch to market could hurt watch sales. Shares in both companies are down as investors worry about overall declines in spending:

A smartwatch revolution could take hold, if computerworld’s myth-busting turns out to be true. Some of the 8 myths are:

Myth #1: There won't be a smartwatch revolution.

Myth #2: Smartwatches will fail because nobody wears watches anymore.

Myth #3: Smartwatches are for people too lazy to take the phone out of their pockets.

Myth #4: Smartwatches are bulky.

Companies that could find new sources for revenue include Apple, Sony, and Google. LG (LPL) is also said to be making a smartwatch. Samsung is reportedly working on a smartwatch, too.

Conclusions

The revolution for mobile devices is moderating, with growth limited in the phone and tablet space. Talk of a smartwatch could be an added source of growth, but investors should not expect sales to be strong. Consequently, investors should not assign a higher multiple for companies reportedly making a smartwatch.

Written by Chris Lau

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5 Responses to “5 Companies to Watch as Smartwatch Rumors Circulate”

  1. I'll be watching out for this 5 companies. I am actually very excited for the future of smartwatches. 2014 is going to be a huge year for wearable technology in general. Smartwatches is definitely going to be the next trend.

  2. Apple could have an iWatch on the market. Even though a search for “Apple iWatch” yields 3.12 million results on Google search, this rumor has yet to be confirmed.

  3. Stanley says:

    Talk of a smartwatch could be an added source of growth, but investors should not expect sales to be strong. Consequently, investors should not assign a higher multiple for companies reportedly making a smartwatch Glooks Watches

  4. Bantee says:

    I've just bought the Samsung Gear 2 Smartwatch and am very pleased. Tag Hauer have bought out a new watch which is the one I wanted but would have been paying a ridiculous amount of money. In regards to style and design, you won't bet the Tag watches. Functionality is still Apple leading the way but that's expected. I wanted an Android based watch to compliment my other equipment. You can check out my Technology blog https://banteetechblog.wordpress.com/ where i've talked a little bit about the Samsung Gear 2.

  5. lena says:

    Smartwatch has become a good business these days and there are many cheap smartwatches that make use of generic motherboards like the U8 boards. These are serious threat to the branded ones. Thank you for sharing on smartwatches catalina island hotels

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